Money does not make you happy. But you do need to pay the rent every month, go to the store, have a drink with friends or get your car insurance in order every year. The many expenses we have to make on a weekly, monthly and yearly basis can sometimes be very confusing and it is easy to lose sight of your financial situation. But this can sometimes be more dangerous than you think. Especially if you are already struggling to make ends meet every month, it is very important to know how much you are getting in each month and what you are spending each month. Below you can find some tips to keep track of this.
1. Keep track of your monthly income and expenses
It is important to get a clear overview of your monthly expenses. That is why it is necessary that you keep a good record of the amount you are paying and what you are spending money on. Make a distinction between your fixed costs (e.g. rent/mortgage, telephone subscription, energy bill, public transport,…) and your variable costs (e.g. food and drink, doctor’s visit, social activities,…). To make this easier we have created a model in excel that you can just fill in. Click here to download it!
2. Eliminate unnecessary costs
Once you know what comes in and what goes out every month, you can start to see what you can save on. Which costs can be eliminated if necessary? It’s up to you to decide which things you need every month and how you can better spend the freed up money. But do not save on important expenses such as hospitalization or family insurance. By the way, it can also be interesting to compare your monthly subscriptions with others, who knows, there are cheaper options and can you save money this way?
3. Keep a financial calendar
What is a financial calendar? Very simple: it is a calendar on which you indicate every month when the bills are paid (possibly by direct debit) or have to be paid – if you pay your bills manually. This way you know when you need to do what you need to do and you avoid additional costs!
4. Be prepared for large costs
So far we have mainly talked about monthly costs. But we all know that there are also things that have to be paid once a year, such as car insurance or family insurance. Try to put a little money aside where this goes throughout the year so that this doesn’t suddenly take a bite out of your budget and you won’t be able to make ends meet that month. It is also very important that you try to be prepared for unexpected situations. For example, you may suddenly fall ill or be out of work, all of which have an impact on our finances. Of course this is not always possible, but try to keep these things in mind as much as possible.
5. Don’t be seduced by unnecessary and impulsive purchases
It is not because it is sometimes a bit more difficult financially that you have to deny yourself everything. Sometimes it’s just right to pamper yourself. But of course don’t exaggerate. Be aware of the expenses you make and don’t let yourself be seduced. Moreover, if you have a credit card, make sure you know how such things work and don’t be surprised when the reckoning comes. After all, you always have to pay for the things you buy, even if that is not always immediate.
If you have any other questions, don’t hesitate to contact us!